Multi-level marketing (MLM) is the label that was used several years ago for what we presently call Network Marketing. Multi-level marketing (MLM) operates through the sales of a product that a consumer is interested in on a person-to-person basis and is not sold through a store or other form of dealership. An independent sales representative (they may have many different titles) will contact individuals and speak to them personally to see if they would be interested in their product or services. The way that multi-level marketing representatives make commissions is through the selling of the product as well a residual that comes from the persons that they have recruited into the multi-level marketing company and the products that they have sold.

The difference between Multi-level marketing (MLM) and direct sales is that direct sales representatives make money through the re-selling of the goods that are available through the company. Multi-level marketing (MLM) representatives also make money through their sales but also as those they have enrolled into the program sell products, they will make a profit as well. The residual continues to go up the chain of those who are involved in the multi-level marketing plan.

Multi-level marketing (MLM) differs from affiliate marketing in that those involved in affiliate marketing focus on one transaction at a time making more money with each transaction they process. The reason for this is that the product that an affiliate marketing company offers is usually something that the client only needs one time such as electronic equipment or household appliances. The multi-level marketing (MLM) offers a variety of goods that can be sold continually to the customer.

The multi-level marketing (MLM) representative makes their money through the customer coming back to purchase more of their products. This is called residual income. This type of income is earned every month from the sales that are taking place in your multi-level marketing (MLM) business. Now what makes this appealing is that you will receive a check for all the sales that take place whether-or-not you are doing the selling. You could be on a holiday and still receive a check for the residual of sales that takes place among those you have brought into the company. This is a enormous appeal to to those looking for home-based business opportunities.

Multi-level marketing (MLM) offers the ordinary person an opportunity to earn a substantial amount of money that will change their future while at the same time giving them the freedom to enjoy a life that they have only envisioned before. Remember to look at all home-based business opportunities cautiously so that you will identify the one that is suitable for you and your character as well as financial goals.